Employment under govt scheme up by 8.1% in March ‘23

Formal job creation under ESIC saw a month-on-month growth of 8.1% in March 2023, with 1.73 million new formal workers being added compared to the 1.6 million added in February, according to a report from the Ministry of Labour and Employment.

Provisional payroll data from ESIC indicates that around 19,000 new establishments were registered and brought under the social security umbrella of the Employees’ State Insurance Corporation in March 2023, expanding the coverage of the scheme.

Of the total formal sector workforce registered under ESIC, employees up to 25 years old make up 48%, which amounts to 0.82 million out of the total 1.73 million formal workers added in May.

In March 2023, 0.33 million female employees and 41 transgender employees were registered under the ESI scheme, highlighting the commitment of ESIC to provide benefits to every section of society.

As of January 2023, the scheme had 33.9 million insured persons and 131.6 million beneficiaries.

The Employees’ State Insurance Corporation is one of the two primary statutory social security organizations under the Ministry of Labour and Employment, the other being the Employees’ Provident Fund Organization. The ESIC manages the fund in accordance with the rules and regulations outlined in the ESI Act of 1948.

Under the scheme, employees earning up to INR 21,000 per month contribute 0.75% of their wages, while the employer contributes 3.25%, making a total contribution of 4%. These funds are used to provide medical and cash benefits to employees and their families.

Employees registered under the scheme are entitled to medical treatment for themselves and their dependents, unemployment cash benefits under certain circumstances, and maternity benefits for women employees. In the event of employment-related disablement or death, the scheme provides disablement benefits and family pensions, respectively.

Source: Economic Times